10-Q 1 tho-20240131.htm 10-Q tho-20240131
false2024Q20000730263--07-31http://www.thorindustries.com/20240131#PropertyPlantAndEquipmentAndFinanceAndOperatingLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortizationhttp://www.thorindustries.com/20240131#PropertyPlantAndEquipmentAndFinanceAndOperatingLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortizationhttp://fasb.org/us-gaap/2023#OtherLiabilitiesCurrenthttp://fasb.org/us-gaap/2023#OtherLiabilitiesCurrenthttp://fasb.org/us-gaap/2023#OtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2023#OtherLiabilitiesNoncurrenthttp://www.thorindustries.com/20240131#PropertyPlantAndEquipmentAndFinanceAndOperatingLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortizationhttp://www.thorindustries.com/20240131#PropertyPlantAndEquipmentAndFinanceAndOperatingLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortizationhttp://fasb.org/us-gaap/2023#OtherLiabilitiesCurrenthttp://fasb.org/us-gaap/2023#OtherLiabilitiesCurrenthttp://fasb.org/us-gaap/2023#OtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2023#OtherLiabilitiesNoncurrent36600007302632023-08-012024-01-3100007302632024-02-29xbrli:shares00007302632024-01-31iso4217:USD00007302632023-07-31iso4217:USDxbrli:shares00007302632023-11-012024-01-3100007302632022-11-012023-01-3100007302632022-08-012023-01-3100007302632022-07-3100007302632023-01-310000730263us-gaap:CommonStockMember2023-10-310000730263us-gaap:AdditionalPaidInCapitalMember2023-10-310000730263us-gaap:RetainedEarningsMember2023-10-310000730263us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-10-310000730263us-gaap:TreasuryStockCommonMember2023-10-310000730263us-gaap:ParentMember2023-10-310000730263us-gaap:NoncontrollingInterestMember2023-10-3100007302632023-10-310000730263us-gaap:RetainedEarningsMember2023-11-012024-01-310000730263us-gaap:ParentMember2023-11-012024-01-310000730263us-gaap:NoncontrollingInterestMember2023-11-012024-01-310000730263us-gaap:CommonStockMember2023-11-012024-01-310000730263us-gaap:AdditionalPaidInCapitalMember2023-11-012024-01-310000730263us-gaap:TreasuryStockCommonMember2023-11-012024-01-310000730263us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-11-012024-01-310000730263us-gaap:CommonStockMember2024-01-310000730263us-gaap:AdditionalPaidInCapitalMember2024-01-310000730263us-gaap:RetainedEarningsMember2024-01-310000730263us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-310000730263us-gaap:TreasuryStockCommonMember2024-01-310000730263us-gaap:ParentMember2024-01-310000730263us-gaap:NoncontrollingInterestMember2024-01-310000730263us-gaap:CommonStockMember2023-07-310000730263us-gaap:AdditionalPaidInCapitalMember2023-07-310000730263us-gaap:RetainedEarningsMember2023-07-310000730263us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-310000730263us-gaap:TreasuryStockCommonMember2023-07-310000730263us-gaap:ParentMember2023-07-310000730263us-gaap:NoncontrollingInterestMember2023-07-310000730263us-gaap:RetainedEarningsMember2023-08-012024-01-310000730263us-gaap:ParentMember2023-08-012024-01-310000730263us-gaap:NoncontrollingInterestMember2023-08-012024-01-310000730263us-gaap:TreasuryStockCommonMember2023-08-012024-01-310000730263us-gaap:CommonStockMember2023-08-012024-01-310000730263us-gaap:AdditionalPaidInCapitalMember2023-08-012024-01-310000730263us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-08-012024-01-310000730263us-gaap:CommonStockMember2022-10-310000730263us-gaap:AdditionalPaidInCapitalMember2022-10-310000730263us-gaap:RetainedEarningsMember2022-10-310000730263us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-10-310000730263us-gaap:TreasuryStockCommonMember2022-10-310000730263us-gaap:ParentMember2022-10-310000730263us-gaap:NoncontrollingInterestMember2022-10-3100007302632022-10-310000730263us-gaap:RetainedEarningsMember2022-11-012023-01-310000730263us-gaap:ParentMember2022-11-012023-01-310000730263us-gaap:NoncontrollingInterestMember2022-11-012023-01-310000730263us-gaap:CommonStockMember2022-11-012023-01-310000730263us-gaap:AdditionalPaidInCapitalMember2022-11-012023-01-310000730263us-gaap:TreasuryStockCommonMember2022-11-012023-01-310000730263us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-11-012023-01-310000730263us-gaap:CommonStockMember2023-01-310000730263us-gaap:AdditionalPaidInCapitalMember2023-01-310000730263us-gaap:RetainedEarningsMember2023-01-310000730263us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-310000730263us-gaap:TreasuryStockCommonMember2023-01-310000730263us-gaap:ParentMember2023-01-310000730263us-gaap:NoncontrollingInterestMember2023-01-310000730263us-gaap:CommonStockMember2022-07-310000730263us-gaap:AdditionalPaidInCapitalMember2022-07-310000730263us-gaap:RetainedEarningsMember2022-07-310000730263us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-310000730263us-gaap:TreasuryStockCommonMember2022-07-310000730263us-gaap:ParentMember2022-07-310000730263us-gaap:NoncontrollingInterestMember2022-07-310000730263us-gaap:RetainedEarningsMember2022-08-012023-01-310000730263us-gaap:ParentMember2022-08-012023-01-310000730263us-gaap:NoncontrollingInterestMember2022-08-012023-01-310000730263us-gaap:TreasuryStockCommonMember2022-08-012023-01-310000730263us-gaap:CommonStockMember2022-08-012023-01-310000730263us-gaap:AdditionalPaidInCapitalMember2022-08-012023-01-310000730263us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-08-012023-01-31tho:segment0000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:NorthAmericanTowableRecreationalVehiclesMember2023-11-012024-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:NorthAmericanTowableRecreationalVehiclesMember2022-11-012023-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:NorthAmericanTowableRecreationalVehiclesMember2023-08-012024-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:NorthAmericanTowableRecreationalVehiclesMember2022-08-012023-01-310000730263us-gaap:OperatingSegmentsMembertho:NorthAmericanMotorizedRecreationalVehiclesMembersrt:NorthAmericaMember2023-11-012024-01-310000730263us-gaap:OperatingSegmentsMembertho:NorthAmericanMotorizedRecreationalVehiclesMembersrt:NorthAmericaMember2022-11-012023-01-310000730263us-gaap:OperatingSegmentsMembertho:NorthAmericanMotorizedRecreationalVehiclesMembersrt:NorthAmericaMember2023-08-012024-01-310000730263us-gaap:OperatingSegmentsMembertho:NorthAmericanMotorizedRecreationalVehiclesMembersrt:NorthAmericaMember2022-08-012023-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMember2023-11-012024-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMember2022-11-012023-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMember2023-08-012024-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMember2022-08-012023-01-310000730263tho:EuropeanRecreationalVehiclesMemberus-gaap:OperatingSegmentsMembersrt:EuropeMember2023-11-012024-01-310000730263tho:EuropeanRecreationalVehiclesMemberus-gaap:OperatingSegmentsMembersrt:EuropeMember2022-11-012023-01-310000730263tho:EuropeanRecreationalVehiclesMemberus-gaap:OperatingSegmentsMembersrt:EuropeMember2023-08-012024-01-310000730263tho:EuropeanRecreationalVehiclesMemberus-gaap:OperatingSegmentsMembersrt:EuropeMember2022-08-012023-01-310000730263us-gaap:OperatingSegmentsMember2023-11-012024-01-310000730263us-gaap:OperatingSegmentsMember2022-11-012023-01-310000730263us-gaap:OperatingSegmentsMember2023-08-012024-01-310000730263us-gaap:OperatingSegmentsMember2022-08-012023-01-310000730263us-gaap:MaterialReconcilingItemsMember2023-11-012024-01-310000730263us-gaap:MaterialReconcilingItemsMember2022-11-012023-01-310000730263us-gaap:MaterialReconcilingItemsMember2023-08-012024-01-310000730263us-gaap:MaterialReconcilingItemsMember2022-08-012023-01-310000730263us-gaap:IntersegmentEliminationMember2023-11-012024-01-310000730263us-gaap:IntersegmentEliminationMember2022-11-012023-01-310000730263us-gaap:IntersegmentEliminationMember2023-08-012024-01-310000730263us-gaap:IntersegmentEliminationMember2022-08-012023-01-310000730263us-gaap:CorporateNonSegmentMember2023-11-012024-01-310000730263us-gaap:CorporateNonSegmentMember2022-11-012023-01-310000730263us-gaap:CorporateNonSegmentMember2023-08-012024-01-310000730263us-gaap:CorporateNonSegmentMember2022-08-012023-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:NorthAmericanTowableRecreationalVehiclesMember2024-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:NorthAmericanTowableRecreationalVehiclesMember2023-07-310000730263us-gaap:OperatingSegmentsMembertho:NorthAmericanMotorizedRecreationalVehiclesMembersrt:NorthAmericaMember2024-01-310000730263us-gaap:OperatingSegmentsMembertho:NorthAmericanMotorizedRecreationalVehiclesMembersrt:NorthAmericaMember2023-07-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMember2024-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMember2023-07-310000730263tho:EuropeanRecreationalVehiclesMemberus-gaap:OperatingSegmentsMembersrt:EuropeMember2024-01-310000730263tho:EuropeanRecreationalVehiclesMemberus-gaap:OperatingSegmentsMembersrt:EuropeMember2023-07-310000730263us-gaap:OperatingSegmentsMember2024-01-310000730263us-gaap:OperatingSegmentsMember2023-07-310000730263us-gaap:MaterialReconcilingItemsMember2024-01-310000730263us-gaap:MaterialReconcilingItemsMember2023-07-310000730263us-gaap:CorporateNonSegmentMember2024-01-310000730263us-gaap:CorporateNonSegmentMember2023-07-310000730263us-gaap:InterestRateSwapMember2023-11-012024-01-310000730263us-gaap:InterestRateSwapMember2022-11-012023-01-310000730263us-gaap:InterestRateSwapMember2023-08-012024-01-310000730263us-gaap:InterestRateSwapMember2022-08-012023-01-310000730263us-gaap:SalesMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2023-11-012024-01-310000730263us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:InterestExpenseMember2023-11-012024-01-310000730263us-gaap:SalesMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2022-11-012023-01-310000730263us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:InterestExpenseMember2022-11-012023-01-310000730263us-gaap:SalesMemberus-gaap:ForeignExchangeForwardMember2023-11-012024-01-310000730263us-gaap:InterestExpenseMemberus-gaap:ForeignExchangeForwardMember2023-11-012024-01-310000730263us-gaap:SalesMemberus-gaap:ForeignExchangeForwardMember2022-11-012023-01-310000730263us-gaap:InterestExpenseMemberus-gaap:ForeignExchangeForwardMember2022-11-012023-01-310000730263us-gaap:SalesMemberus-gaap:CommodityContractMember2023-11-012024-01-310000730263us-gaap:CommodityContractMemberus-gaap:InterestExpenseMember2023-11-012024-01-310000730263us-gaap:SalesMemberus-gaap:CommodityContractMember2022-11-012023-01-310000730263us-gaap:CommodityContractMemberus-gaap:InterestExpenseMember2022-11-012023-01-310000730263us-gaap:SalesMemberus-gaap:InterestRateSwapMember2023-11-012024-01-310000730263us-gaap:InterestRateSwapMemberus-gaap:InterestExpenseMember2023-11-012024-01-310000730263us-gaap:SalesMemberus-gaap:InterestRateSwapMember2022-11-012023-01-310000730263us-gaap:InterestRateSwapMemberus-gaap:InterestExpenseMember2022-11-012023-01-310000730263us-gaap:SalesMember2023-11-012024-01-310000730263us-gaap:InterestExpenseMember2023-11-012024-01-310000730263us-gaap:SalesMember2022-11-012023-01-310000730263us-gaap:InterestExpenseMember2022-11-012023-01-310000730263us-gaap:SalesMemberus-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeForwardMember2023-08-012024-01-310000730263us-gaap:CashFlowHedgingMemberus-gaap:InterestExpenseMemberus-gaap:ForeignExchangeForwardMember2023-08-012024-01-310000730263us-gaap:SalesMemberus-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeForwardMember2022-08-012023-01-310000730263us-gaap:CashFlowHedgingMemberus-gaap:InterestExpenseMemberus-gaap:ForeignExchangeForwardMember2022-08-012023-01-310000730263us-gaap:SalesMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2023-08-012024-01-310000730263us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:InterestExpenseMember2023-08-012024-01-310000730263us-gaap:SalesMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2022-08-012023-01-310000730263us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:InterestExpenseMember2022-08-012023-01-310000730263us-gaap:SalesMemberus-gaap:ForeignExchangeForwardMember2023-08-012024-01-310000730263us-gaap:InterestExpenseMemberus-gaap:ForeignExchangeForwardMember2023-08-012024-01-310000730263us-gaap:SalesMemberus-gaap:ForeignExchangeForwardMember2022-08-012023-01-310000730263us-gaap:InterestExpenseMemberus-gaap:ForeignExchangeForwardMember2022-08-012023-01-310000730263us-gaap:SalesMemberus-gaap:CommodityContractMember2023-08-012024-01-310000730263us-gaap:CommodityContractMemberus-gaap:InterestExpenseMember2023-08-012024-01-310000730263us-gaap:SalesMemberus-gaap:CommodityContractMember2022-08-012023-01-310000730263us-gaap:CommodityContractMemberus-gaap:InterestExpenseMember2022-08-012023-01-310000730263us-gaap:SalesMemberus-gaap:InterestRateSwapMember2023-08-012024-01-310000730263us-gaap:InterestRateSwapMemberus-gaap:InterestExpenseMember2023-08-012024-01-310000730263us-gaap:SalesMemberus-gaap:InterestRateSwapMember2022-08-012023-01-310000730263us-gaap:InterestRateSwapMemberus-gaap:InterestExpenseMember2022-08-012023-01-310000730263us-gaap:SalesMember2023-08-012024-01-310000730263us-gaap:InterestExpenseMember2023-08-012024-01-310000730263us-gaap:SalesMember2022-08-012023-01-310000730263us-gaap:InterestExpenseMember2022-08-012023-01-310000730263us-gaap:NondesignatedMember2024-01-310000730263us-gaap:NondesignatedMember2023-07-310000730263tho:RecreationVehiclesMember2024-01-310000730263tho:RecreationVehiclesMember2023-07-310000730263us-gaap:AllOtherSegmentsMember2024-01-310000730263us-gaap:AllOtherSegmentsMember2023-07-310000730263us-gaap:LandMember2024-01-310000730263us-gaap:LandMember2023-07-310000730263us-gaap:BuildingAndBuildingImprovementsMember2024-01-310000730263us-gaap:BuildingAndBuildingImprovementsMember2023-07-310000730263us-gaap:MachineryAndEquipmentMember2024-01-310000730263us-gaap:MachineryAndEquipmentMember2023-07-310000730263tho:RentalVehiclesMember2024-01-310000730263tho:RentalVehiclesMember2023-07-310000730263tho:DealerNetworkAndCustomerRelationshipsMember2024-01-310000730263tho:DealerNetworkAndCustomerRelationshipsMember2023-07-310000730263us-gaap:TrademarksMember2024-01-310000730263us-gaap:TrademarksMember2023-07-310000730263tho:DesignTechnologyAndOtherIntangiblesMember2024-01-310000730263tho:DesignTechnologyAndOtherIntangiblesMember2023-07-310000730263us-gaap:NoncompeteAgreementsMember2024-01-310000730263us-gaap:NoncompeteAgreementsMember2023-07-310000730263srt:NorthAmericaMembertho:TowablesMembertho:RecreationVehiclesMember2023-07-310000730263srt:NorthAmericaMembertho:MotorizedMembertho:RecreationVehiclesMember2023-07-310000730263srt:EuropeMembertho:RecreationVehiclesMember2023-07-310000730263srt:NorthAmericaMembertho:TowablesMembertho:RecreationVehiclesMember2023-08-012024-01-310000730263srt:NorthAmericaMembertho:MotorizedMembertho:RecreationVehiclesMember2023-08-012024-01-310000730263srt:EuropeMembertho:RecreationVehiclesMember2023-08-012024-01-310000730263us-gaap:AllOtherSegmentsMember2023-08-012024-01-310000730263srt:NorthAmericaMembertho:TowablesMembertho:RecreationVehiclesMember2024-01-310000730263srt:NorthAmericaMembertho:MotorizedMembertho:RecreationVehiclesMember2024-01-310000730263srt:EuropeMembertho:RecreationVehiclesMember2024-01-310000730263srt:NorthAmericaMembertho:TowablesMembertho:RecreationVehiclesMember2022-07-310000730263srt:NorthAmericaMembertho:MotorizedMembertho:RecreationVehiclesMember2022-07-310000730263srt:EuropeMembertho:RecreationVehiclesMember2022-07-310000730263us-gaap:AllOtherSegmentsMember2022-07-310000730263srt:NorthAmericaMembertho:TowablesMembertho:RecreationVehiclesMember2022-08-012023-01-310000730263srt:NorthAmericaMembertho:MotorizedMembertho:RecreationVehiclesMember2022-08-012023-01-310000730263srt:EuropeMembertho:RecreationVehiclesMember2022-08-012023-01-310000730263us-gaap:AllOtherSegmentsMember2022-08-012023-01-310000730263srt:NorthAmericaMembertho:TowablesMembertho:RecreationVehiclesMember2023-01-310000730263srt:NorthAmericaMembertho:MotorizedMembertho:RecreationVehiclesMember2023-01-310000730263srt:EuropeMembertho:RecreationVehiclesMember2023-01-310000730263us-gaap:AllOtherSegmentsMember2023-01-310000730263tho:TechNexusMembertho:ClassCRPUnitsMembertho:TNRPHoldingLLCMember2022-12-30xbrli:pure0000730263tho:ClassARPUnitsMembertho:TNRPHoldingLLCMember2022-12-300000730263tho:TNRPHoldingLLCMember2024-01-310000730263tho:TNRPHoldingLLCMember2023-07-310000730263us-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMembertho:FreedomRoadsMember2023-11-012024-01-310000730263us-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMembertho:FreedomRoadsMember2022-11-012023-01-310000730263us-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMembertho:FreedomRoadsMember2023-08-012024-01-310000730263us-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMembertho:FreedomRoadsMember2022-08-012023-01-310000730263us-gaap:CustomerConcentrationRiskMembertho:FreedomRoadsMemberus-gaap:AccountsReceivableMember2023-08-012024-01-310000730263us-gaap:CustomerConcentrationRiskMembertho:FreedomRoadsMemberus-gaap:AccountsReceivableMember2021-08-012022-07-310000730263us-gaap:FairValueInputsLevel1Member2024-01-310000730263us-gaap:FairValueInputsLevel1Member2023-07-310000730263us-gaap:FairValueInputsLevel2Member2024-01-310000730263us-gaap:FairValueInputsLevel2Member2023-07-310000730263tho:TermOfProductWarrantyOneMember2023-08-012024-01-310000730263tho:TermOfProductWarrantyTwoMember2023-08-012024-01-310000730263tho:TermLoanMember2024-01-310000730263tho:TermLoanMember2023-07-310000730263tho:AssetBasedCreditFacilityMember2024-01-310000730263tho:AssetBasedCreditFacilityMember2023-07-310000730263tho:SeniorUnsecuredNotesDue2029Memberus-gaap:UnsecuredDebtMember2024-01-310000730263tho:SeniorUnsecuredNotesDue2029Memberus-gaap:UnsecuredDebtMember2023-07-310000730263tho:UsTrancheMembertho:TermLoanMember2023-11-152023-11-150000730263tho:UsTrancheMembertho:TermLoanMemberus-gaap:BaseRateMember2023-11-152023-11-150000730263tho:UsTrancheMembertho:TermLoanMembertho:SecuredOvernightFinancingRateSOFRMember2023-11-152023-11-150000730263tho:UsTrancheMembertho:TermLoanMember2023-11-150000730263tho:TermLoanMembertho:EuroTrancheMember2023-11-15iso4217:EUR0000730263tho:AssetBasedCreditFacilityMember2023-11-150000730263tho:UsTrancheMembertho:TermLoanMembertho:SecuredOvernightFinancingRateSOFRMember2024-01-310000730263tho:UsTrancheMembertho:TermLoanMembertho:SecuredOvernightFinancingRateSOFRMember2023-07-310000730263tho:TermLoanMembertho:EuroTrancheMember2024-01-310000730263tho:TermLoanMembertho:EuroTrancheMember2023-07-310000730263tho:SeniorUnsecuredNotesDue2029Memberus-gaap:UnsecuredDebtMember2021-10-140000730263tho:UnsecuredSeriesOneDebtMember2024-01-310000730263tho:UnsecuredSeriesTwoDebtMember2024-01-310000730263tho:OtherLongTermDebtMembersrt:MinimumMember2024-01-310000730263tho:OtherLongTermDebtMembersrt:MaximumMember2024-01-310000730263us-gaap:SellingGeneralAndAdministrativeExpensesMember2023-11-012024-01-310000730263us-gaap:SellingGeneralAndAdministrativeExpensesMember2023-08-012024-01-310000730263us-gaap:SellingGeneralAndAdministrativeExpensesMember2022-11-012023-01-310000730263us-gaap:SellingGeneralAndAdministrativeExpensesMember2022-08-012023-01-3100007302632021-12-210000730263tho:JuneTwentyTwentyTwoShareRepurchasePlanMember2022-06-2400007302632021-12-212024-01-310000730263tho:DecemberTwentyTwentyOneShareRepurchasePlanMember2024-01-310000730263tho:JuneTwentyTwentyTwoShareRepurchasePlanMember2024-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:TravelTrailersMembertho:RecreationVehiclesMember2023-11-012024-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:TravelTrailersMembertho:RecreationVehiclesMember2022-11-012023-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:TravelTrailersMembertho:RecreationVehiclesMember2023-08-012024-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:TravelTrailersMembertho:RecreationVehiclesMember2022-08-012023-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:FifthWheelsTowablesMembertho:RecreationVehiclesMember2023-11-012024-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:FifthWheelsTowablesMembertho:RecreationVehiclesMember2022-11-012023-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:FifthWheelsTowablesMembertho:RecreationVehiclesMember2023-08-012024-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:FifthWheelsTowablesMembertho:RecreationVehiclesMember2022-08-012023-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:TowablesMembertho:RecreationVehiclesMember2023-11-012024-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:TowablesMembertho:RecreationVehiclesMember2022-11-012023-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:TowablesMembertho:RecreationVehiclesMember2023-08-012024-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:TowablesMembertho:RecreationVehiclesMember2022-08-012023-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:ClassaMotorizedMembertho:RecreationVehiclesMember2023-11-012024-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:ClassaMotorizedMembertho:RecreationVehiclesMember2022-11-012023-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:ClassaMotorizedMembertho:RecreationVehiclesMember2023-08-012024-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:ClassaMotorizedMembertho:RecreationVehiclesMember2022-08-012023-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:ClasscMotorizedMembertho:RecreationVehiclesMember2023-11-012024-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:ClasscMotorizedMembertho:RecreationVehiclesMember2022-11-012023-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:ClasscMotorizedMembertho:RecreationVehiclesMember2023-08-012024-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:ClasscMotorizedMembertho:RecreationVehiclesMember2022-08-012023-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:ClassbMotorizedMembertho:RecreationVehiclesMember2023-11-012024-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:ClassbMotorizedMembertho:RecreationVehiclesMember2022-11-012023-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:ClassbMotorizedMembertho:RecreationVehiclesMember2023-08-012024-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:ClassbMotorizedMembertho:RecreationVehiclesMember2022-08-012023-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:MotorizedMembertho:RecreationVehiclesMember2023-11-012024-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:MotorizedMembertho:RecreationVehiclesMember2022-11-012023-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:MotorizedMembertho:RecreationVehiclesMember2023-08-012024-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:MotorizedMembertho:RecreationVehiclesMember2022-08-012023-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:RecreationVehiclesMember2023-11-012024-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:RecreationVehiclesMember2022-11-012023-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:RecreationVehiclesMember2023-08-012024-01-310000730263us-gaap:OperatingSegmentsMembersrt:NorthAmericaMembertho:RecreationVehiclesMember2022-08-012023-01-310000730263us-gaap:OperatingSegmentsMembersrt:EuropeMembertho:RecreationVehiclesMembertho:MotorcaravanMember2023-11-012024-01-310000730263us-gaap:OperatingSegmentsMembersrt:EuropeMembertho:RecreationVehiclesMembertho:MotorcaravanMember2022-11-012023-01-310000730263us-gaap:OperatingSegmentsMembersrt:EuropeMembertho:RecreationVehiclesMembertho:MotorcaravanMember2023-08-012024-01-310000730263us-gaap:OperatingSegmentsMembersrt:EuropeMembertho:RecreationVehiclesMembertho:MotorcaravanMember2022-08-012023-01-310000730263us-gaap:OperatingSegmentsMembertho:CampervanMembersrt:EuropeMembertho:RecreationVehiclesMember2023-11-012024-01-310000730263us-gaap:OperatingSegmentsMembertho:CampervanMembersrt:EuropeMembertho:RecreationVehiclesMember2022-11-012023-01-310000730263us-gaap:OperatingSegmentsMembertho:CampervanMembersrt:EuropeMembertho:RecreationVehiclesMember2023-08-012024-01-310000730263us-gaap:OperatingSegmentsMembertho:CampervanMembersrt:EuropeMembertho:RecreationVehiclesMember2022-08-012023-01-310000730263tho:CaravanMemberus-gaap:OperatingSegmentsMembersrt:EuropeMembertho:RecreationVehiclesMember2023-11-012024-01-310000730263tho:CaravanMemberus-gaap:OperatingSegmentsMembersrt:EuropeMembertho:RecreationVehiclesMember2022-11-012023-01-310000730263tho:CaravanMemberus-gaap:OperatingSegmentsMembersrt:EuropeMembertho:RecreationVehiclesMember2023-08-012024-01-310000730263tho:CaravanMemberus-gaap:OperatingSegmentsMembersrt:EuropeMembertho:RecreationVehiclesMember2022-08-012023-01-310000730263us-gaap:OperatingSegmentsMembertho:OtherRvRelatedMembersrt:EuropeMembertho:RecreationVehiclesMember2023-11-012024-01-310000730263us-gaap:OperatingSegmentsMembertho:OtherRvRelatedMembersrt:EuropeMembertho:RecreationVehiclesMember2022-11-012023-01-310000730263us-gaap:OperatingSegmentsMembertho:OtherRvRelatedMembersrt:EuropeMembertho:RecreationVehiclesMember2023-08-012024-01-310000730263us-gaap:OperatingSegmentsMembertho:OtherRvRelatedMembersrt:EuropeMembertho:RecreationVehiclesMember2022-08-012023-01-310000730263us-gaap:OperatingSegmentsMembersrt:EuropeMembertho:RecreationVehiclesMember2023-11-012024-01-310000730263us-gaap:OperatingSegmentsMembersrt:EuropeMembertho:RecreationVehiclesMember2022-11-012023-01-310000730263us-gaap:OperatingSegmentsMembersrt:EuropeMembertho:RecreationVehiclesMember2023-08-012024-01-310000730263us-gaap:OperatingSegmentsMembersrt:EuropeMembertho:RecreationVehiclesMember2022-08-012023-01-310000730263us-gaap:OperatingSegmentsMembertho:RecreationVehiclesMember2023-11-012024-01-310000730263us-gaap:OperatingSegmentsMembertho:RecreationVehiclesMember2022-11-012023-01-310000730263us-gaap:OperatingSegmentsMembertho:RecreationVehiclesMember2023-08-012024-01-310000730263us-gaap:OperatingSegmentsMembertho:RecreationVehiclesMember2022-08-012023-01-310000730263us-gaap:AccumulatedTranslationAdjustmentMember2023-10-310000730263us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-10-310000730263tho:AccumulatedOtherGainLossAttributableToParentMember2023-10-310000730263us-gaap:AociAttributableToNoncontrollingInterestMember2023-10-310000730263us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2023-10-310000730263us-gaap:AccumulatedTranslationAdjustmentMember2023-11-012024-01-310000730263us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-11-012024-01-310000730263tho:AccumulatedOtherGainLossAttributableToParentMember2023-11-012024-01-310000730263us-gaap:AociAttributableToNoncontrollingInterestMember2023-11-012024-01-310000730263us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2023-11-012024-01-310000730263us-gaap:AccumulatedTranslationAdjustmentMember2024-01-310000730263us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-01-310000730263tho:AccumulatedOtherGainLossAttributableToParentMember2024-01-310000730263us-gaap:AociAttributableToNoncontrollingInterestMember2024-01-310000730263us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2024-01-310000730263us-gaap:AccumulatedTranslationAdjustmentMember2022-10-310000730263us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-10-310000730263tho:AccumulatedOtherGainLossAttributableToParentMember2022-10-310000730263us-gaap:AociAttributableToNoncontrollingInterestMember2022-10-310000730263us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2022-10-310000730263us-gaap:AccumulatedTranslationAdjustmentMember2022-11-012023-01-310000730263us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-11-012023-01-310000730263tho:AccumulatedOtherGainLossAttributableToParentMember2022-11-012023-01-310000730263us-gaap:AociAttributableToNoncontrollingInterestMember2022-11-012023-01-310000730263us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2022-11-012023-01-310000730263us-gaap:AccumulatedTranslationAdjustmentMember2023-01-310000730263us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-310000730263tho:AccumulatedOtherGainLossAttributableToParentMember2023-01-310000730263us-gaap:AociAttributableToNoncontrollingInterestMember2023-01-310000730263us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2023-01-310000730263us-gaap:AccumulatedTranslationAdjustmentMember2023-07-310000730263us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-07-310000730263tho:AccumulatedOtherGainLossAttributableToParentMember2023-07-310000730263us-gaap:AociAttributableToNoncontrollingInterestMember2023-07-310000730263us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2023-07-310000730263us-gaap:AccumulatedTranslationAdjustmentMember2023-08-012024-01-310000730263us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-08-012024-01-310000730263tho:AccumulatedOtherGainLossAttributableToParentMember2023-08-012024-01-310000730263us-gaap:AociAttributableToNoncontrollingInterestMember2023-08-012024-01-310000730263us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2023-08-012024-01-310000730263us-gaap:AccumulatedTranslationAdjustmentMember2022-07-310000730263us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-07-310000730263tho:AccumulatedOtherGainLossAttributableToParentMember2022-07-310000730263us-gaap:AociAttributableToNoncontrollingInterestMember2022-07-310000730263us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2022-07-310000730263us-gaap:AccumulatedTranslationAdjustmentMember2022-08-012023-01-310000730263us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-08-012023-01-310000730263tho:AccumulatedOtherGainLossAttributableToParentMember2022-08-012023-01-310000730263us-gaap:AociAttributableToNoncontrollingInterestMember2022-08-012023-01-310000730263us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2022-08-012023-01-310000730263tho:ColleenZuhlMember2023-08-012024-01-310000730263tho:ColleenZuhlMember2023-11-012024-01-310000730263tho:ColleenZuhlMember2024-01-31

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the quarterly period ended January 31, 2024.
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period from ____ to ____.
COMMISSION FILE NUMBER 001-09235
THOR_LOGO_Green_Dark%20Grey.jpg
THOR INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
Delaware93-0768752
(State or other jurisdiction of(I.R.S. Employer
incorporation or organization)Identification No.)
601 E. Beardsley Ave., Elkhart, IN
46514-3305
(Address of principal executive offices)(Zip Code)
(574) 970-7460
(Registrant's telephone number, including area code)
None
(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:
Name of each exchange
Title of each classTrading Symbol(s)on which registered
Common stock (Par value $0.10 Per Share)THONew York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes        No    

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes        No    

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer                         Accelerated filer            
Non-accelerated filer                         Smaller reporting company    
Emerging growth company    

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes        No    
As of February 29, 2024, 53,324,545 shares of the registrant’s common stock, par value $0.10 per share, were outstanding.




PART I – FINANCIAL INFORMATION (Unless otherwise indicated, amounts in thousands except share and per share data.)
ITEM 1. FINANCIAL STATEMENTS

THOR INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

January 31, 2024July 31, 2023
ASSETS
Current assets:
Cash and cash equivalents$340,192 $441,232 
Accounts receivable, trade, net534,402 543,865 
Accounts receivable, other, net91,216 99,354 
Inventories, net1,776,268 1,653,070 
Prepaid income taxes, expenses and other97,184 56,059 
Total current assets2,839,262 2,793,580 
 Property, plant and equipment, net1,382,227 1,387,808 
Other assets:
Goodwill1,787,761 1,800,422 
Amortizable intangible assets, net925,515 996,979 
Deferred income tax assets, net9,455 5,770 
Equity investments128,572 126,909 
Other153,037 149,362 
Total other assets3,004,340 3,079,442 
TOTAL ASSETS
$7,225,829 $7,260,830 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$762,095 $736,275 
Current portion of long-term debt17,234 11,368 
Short-term financial obligations68,593 49,433 
Accrued liabilities:
Compensation and related items
147,531 189,324 
Product warranties
319,614 345,197 
Income and other taxes
69,820 100,631 
Promotions and rebates
132,948 163,410 
Product, property and related liabilities38,619 54,720 
Other
70,007 66,124 
Total current liabilities1,626,461 1,716,482 
Long-term debt, net1,390,469 1,291,311 
Deferred income tax liabilities, net68,517 75,668 
Unrecognized tax benefits15,931 14,835 
Other liabilities181,856 179,136 
Total long-term liabilities1,656,773 1,560,950 
Contingent liabilities and commitments
 
Stockholders’ equity:
Preferred stock – authorized 1,000,000 shares; none outstanding
  
Common stock – par value of $.10 per share; authorized 250,000,000 shares; issued 66,859,738 and 66,344,340 shares, respectively
6,686 6,634 
Additional paid-in capital560,365 539,032 
Retained earnings4,101,210 4,091,563 
Accumulated other comprehensive loss, net of tax(92,894)(68,547)
Less: Treasury shares of 13,535,193 and 13,030,030, respectively, at cost
(638,949)(592,667)
Stockholders’ equity attributable to THOR Industries, Inc.3,936,418 3,976,015 
Non-controlling interests 6,177 7,383 
Total stockholders’ equity3,942,595 3,983,398 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$7,225,829 $7,260,830 

See Notes to the Condensed Consolidated Financial Statements.



2


THOR INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED)

Three Months Ended January 31,Six Months Ended January 31,
2024202320242023
Net sales
$2,207,369 $2,346,635 $4,708,128 $5,454,719 
Cost of products sold1,936,522 2,063,700 4,079,349 4,685,308 
Gross profit270,847 282,935 628,779 769,411 
Selling, general and administrative expenses220,125 208,743 438,021 450,367 
Amortization of intangible assets
32,464 35,199 64,808 70,418 
Interest expense, net28,229 25,633 48,426 48,440 
Other income, net16,865 19,358 1,952 11,803 
Income before income taxes6,894 32,718 79,476 211,989 
Income tax provision1,568 6,912 19,117 48,760 
Net income 5,326 25,806 60,359 163,229 
Less: Net loss attributable to non-controlling interests(1,891)(1,274)(423)(36)
Net income attributable to THOR Industries, Inc.$7,217 $27,080 $60,782 $163,265 
Weighted-average common shares outstanding:
Basic53,322,504 53,518,878 53,309,169 53,587,646 
Diluted53,650,583 53,810,910 53,752,150 53,869,830 
Earnings per common share:
Basic$0.14 $0.51 $1.14 $3.05 
Diluted$0.13 $0.50 $1.13 $3.03 
Comprehensive income:
Net income $5,326 $25,806 $60,359 $163,229 
Other comprehensive income (loss), net of tax
Foreign currency translation adjustment35,627 128,377 (25,019)85,048 
Unrealized gain (loss) on derivatives, net of tax (661) 143 
 Other loss, net of tax(111)(39)(111)(39)
Total other comprehensive income (loss), net of tax35,516 127,677 (25,130)85,152 
Total Comprehensive income 40,842 153,483 35,229 248,381 
Less: Comprehensive loss attributable to non-controlling interests(1,952)(1,249)(1,206)(445)
Comprehensive income attributable to THOR Industries, Inc.$42,794 $154,732 $36,435 $248,826 



















See Notes to the Condensed Consolidated Financial Statements.



3


THOR INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Six Months Ended January 31,
20242023
Cash flows from operating activities:
Net income$60,359 $163,229 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation70,589 64,257 
Amortization of intangible assets64,808 70,418 
Amortization of debt issuance costs and extinguishment charges11,864 5,697 
Deferred income tax benefit(11,858)(6,149)
Gain on disposition of property, plant and equipment(7,807)(371)
Stock-based compensation expense19,698 16,935 
Changes in assets and liabilities:
Accounts receivable, net15,188 301,269 
Inventories, net(149,742)(83,564)
Prepaid income taxes, expenses and other(24,312)(14,572)
Accounts payable33,813 (209,557)
Accrued liabilities(133,798)(125,590)
Long-term liabilities and other6,998 3,319 
Net cash provided by (used in) operating activities(44,200)185,321 
Cash flows from investing activities:
Purchases of property, plant and equipment (78,901)(100,985)
Proceeds from dispositions of property, plant and equipment 12,872 3,832 
Business acquisitions, net of cash acquired(3,814)(6,184)
Other(11,100)(10,411)
Net cash used in investing activities(80,943)(113,748)
Cash flows from financing activities:
Borrowings on term-loan credit facilities186,723  
Payments on term-loan credit facilities(127,626)(12,355)
Borrowings on revolving asset-based credit facilities113,502  
Payments on revolving asset-based credit facilities(51,925)(15,000)
Payments on other debt(5,574)(6,383)
Payments of debt issuance costs(10,480) 
Cash dividends paid(51,135)(48,165)
Payments on finance lease obligations(365)(604)
Purchases of treasury shares(30,037)(25,407)
Payments related to vesting of stock-based awards(16,245)(6,765)
Short-term financial obligations and other, net19,916 12,937 
Net cash provided by (used in) financing activities26,754 (101,742)
Effect of exchange rate changes on cash and cash equivalents(2,651)172 
Net decrease in cash and cash equivalents(101,040)(29,997)
Cash and cash equivalents, beginning of period441,232 311,553 
Cash and cash equivalents, end of period$340,192 $281,556 
Supplemental cash flow information:
Income taxes paid$90,528 $110,662 
Interest paid$41,414 $44,981 
Non-cash investing and financing transactions:
Capital expenditures in accounts payable$3,098 $5,183 



See Notes to the Condensed Consolidated Financial Statements.



4


THOR INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
FOR THE THREE AND SIX MONTHS ENDED JANUARY 31, 2024 AND 2023 (UNAUDITED)
Three Months Ended January 31, 2024
AccumulatedStockholders’
AdditionalOtherEquityNon-Total
Common StockPaid-InRetainedComprehensiveTreasury StockAttributablecontrollingStockholders’
SharesAmountCapitalEarningsIncome (Loss)SharesAmountto THORInterestsEquity
Balance at November 1, 202366,686,498 $6,669 $551,491 $4,119,589 $(128,471)13,480,026 $(633,817)$3,915,461 $8,129 $3,923,590 
Net income (loss)— — — 7,217 — — — 7,217 (1,891)5,326 
Purchases of treasury shares— — — — — — — — — — 
Restricted stock unit activity173,240 17 (372)— — 55,167 (5,132)(5,487)— (5,487)
Dividends $0.48 per common share
— — — (25,596)— — — (25,596)— (25,596)
Stock-based compensation expense— — 9,246 — — — — 9,246 — 9,246 
Other comprehensive income (loss)— — — — 35,577 — — 35,577 (61)35,516 
Balance at January 31, 2024
66,859,738 $6,686 $560,365 $4,101,210 $(92,894)13,535,193 $(638,949)$3,936,418 $6,177 $3,942,595 
Six Months Ended January 31, 2024
AccumulatedStockholders’
AdditionalOtherEquityNon-Total
Common StockPaid-InRetainedComprehensiveTreasury StockAttributablecontrollingStockholders’
SharesAmountCapitalEarningsIncome (Loss)SharesAmountto THORInterestsEquity
Balance at August 1, 202366,344,340 $6,634 $539,032 $4,091,563 $(68,547)13,030,030 $(592,667)$3,976,015 $7,383 $3,983,398 
Net income (loss)— — — 60,782 — — — 60,782 (423)60,359 
Purchases of treasury shares— — — — — 327,876 (30,037)(30,037)— (30,037)
Restricted stock unit activity515,398 52 1,635 — — 177,287 (16,245)(14,558)— (14,558)
Dividends $0.96 per common share
— — — (51,135)— — — (51,135)— (51,135)
Stock-based compensation expense— — 19,698 — — — — 19,698 — 19,698 
Other comprehensive income (loss)— — — — (24,347)— — (24,347)(783)(25,130)
Balance at January 31, 2024
66,859,738 $6,686 $560,365 $4,101,210 $(92,894)13,535,193 $(638,949)$3,936,418 $6,177 $3,942,595 




See Notes to the Condensed Consolidated Financial Statements.



5


THOR INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
FOR THE THREE AND SIX MONTHS ENDED JANUARY 31, 2024 AND 2023 (UNAUDITED)
Three Months Ended January 31, 2023
AccumulatedStockholders’
AdditionalOtherEquityNon-Total
Common StockPaid-InRetainedComprehensiveTreasury StockAttributablecontrollingStockholders’
SharesAmountCapitalEarningsIncome (Loss)SharesAmountto THORInterestsEquity
Balance at November 1, 202266,326,135 $6,633 $509,579 $3,925,365 $(223,698)12,813,019 $(575,516)$3,642,363 $8,596 $3,650,959 
Net income (loss)— — — 27,080 — — — 27,080 (1,274)25,806 
Restricted stock unit activity7,937 — (612)— — 2,080 (159)(771)— (771)
Dividends $0.45 per common share
— — — (24,084)— — — (24,084)— (24,084)
Stock-based compensation expense— — 8,543 — — — — 8,543 — 8,543 
Other comprehensive income (loss)— — — — 127,652 — — 127,652 25 127,677 
Balance at January 31, 2023
66,334,072 $6,633 $517,510 $3,928,361 $(96,046)12,815,099 $(575,675)$3,780,783 $7,347 $3,788,130 
Six Months Ended January 31, 2023
AccumulatedStockholders’
AdditionalOtherEquityNon-Total
Common StockPaid-InRetainedComprehensiveTreasury StockAttributablecontrollingStockholders’
SharesAmountCapitalEarningsIncome (Loss)SharesAmountto THORInterestsEquity
Balance at August 1, 202266,059,403 $6,606 $497,946 $3,813,261 $(181,607)12,382,441 $(543,344)$3,592,862 $7,792 $3,600,654 
Net income (loss)— — — 163,265 — — — 163,265 (36)163,229 
Purchases of treasury shares— — — — — 338,733 (25,407)(25,407)— (25,407)
Restricted stock unit activity274,669 27 2,629 — — 93,925 (6,924)(4,268)— (4,268)
Dividends $0.90 per common share
— — — (48,165)— — — (48,165)— (48,165)
Stock-based compensation expense— — 16,935 — — — — 16,935 — 16,935 
Other comprehensive income (loss)— — — — 85,561 — — 85,561 (409)85,152 
Balance at January 31, 2023
66,334,072 $6,633 $517,510 $3,928,361 $(96,046)12,815,099 $(575,675)$3,780,783 $7,347 $3,788,130 






See Notes to the Condensed Consolidated Financial Statements.



6


NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(All U.S. Dollar and Euro amounts presented in thousands except share and per share data or except as otherwise specified)

1.    Nature of Operations and Accounting Policies

Nature of Operations

THOR Industries, Inc. was founded in 1980 and is the sole owner of operating subsidiaries (collectively, the “Company” or “THOR”), that, combined, represent the world's largest manufacturer of recreational vehicles (“RVs”). The Company manufactures a wide variety of RVs in the United States and Europe and sells those vehicles, as well as related parts and accessories, primarily to independent, non-franchise dealers throughout the United States, Canada and Europe. Unless the context requires or indicates otherwise, all references to “THOR,” the “Company,” “we,” “our” and “us” refer to THOR Industries, Inc. and its subsidiaries.

The July 31, 2023 amounts are derived from the annual audited financial statements of THOR. The interim financial statements are unaudited. In the opinion of management, all adjustments (which consist of normal, recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented have been made. These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2023. Due to seasonality within the recreational vehicle industry, the impact of supply chain disruptions primarily in Europe, inflation and shifting consumer demand on our industry, among other factors, annualizing the results of operations for the six months ended January 31, 2024 would not necessarily be indicative of the results expected for the full fiscal year.

Recently Issued Accounting Standards Not Yet Adopted

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update No. 2023-07 (“ASU 2023-07”) “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”, which requires additional disclosures about significant segment expenses regularly provided to the Chief Operating Decision Maker. ASU 2023-07 is effective for annual reporting periods beginning after December 15, 2023, or the annual report for fiscal 2025 for the Company, and interim periods within fiscal years beginning after December 15, 2024, or interim periods starting in fiscal 2026 for the Company. Early adoption is permitted. We are currently evaluating the impact of ASU 2023-07 on our consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”, requiring enhancements and further transparency to certain income tax disclosures. Under this ASU, entities must disclose, on an annual basis, specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. In addition, ASU 2023-09 requires entities to disclose additional information about income taxes paid. The new standard also eliminates certain existing disclosure requirements related to uncertain tax positions and unrecognized deferred tax liabilities. ASU 2023-09 is effective for financial statements for annual periods beginning after December 15, 2024. This ASU is effective for the Company in its fiscal year 2026 beginning on August 1, 2025. The Company is currently evaluating the potential impact of adopting this guidance on the consolidated financial statements.
7



2.    Business Segments

The Company has three reportable segments, all related to recreational vehicles: (1) North American Towable Recreational Vehicles, (2) North American Motorized Recreational Vehicles and (3) European Recreational Vehicles. The operations of the Company's Airxcel and Postle subsidiaries are included in “Other”. Net sales included in Other relate primarily to the sale of specialized component parts and aluminum extrusions. Intercompany eliminations adjust for Airxcel and Postle sales to the Company’s North American Towable and North American Motorized segments, which are consummated at established transfer prices generally consistent with the selling prices of products to third parties.

The following tables reflect certain financial information by reportable segment:

Three Months Ended January 31,Six Months Ended January 31,
NET SALES:2024202320242023
Recreational vehicles
North American Towable$730,968$829,751$1,676,422$2,147,557
North American Motorized570,424738,5831,281,5831,862,102
Total North America1,301,3921,568,3342,958,0054,009,659
European782,294646,9381,490,4951,151,240
Total recreational vehicles2,083,6862,215,2724,448,5005,160,899
Other166,534164,859365,455397,507
Intercompany eliminations(42,851)(33,496)(105,827)(103,687)
Total$2,207,369$2,346,635$4,708,128$5,454,719

Three Months Ended January 31,Six Months Ended January 31,
INCOME (LOSS) BEFORE INCOME TAXES:2024202320242023
Recreational vehicles
North American Towable$661$(7,119)$49,910$103,888
North American Motorized26,46061,54463,512185,977
Total North America27,12154,425113,422289,865
European38,05712,01566,8245,547
Total recreational vehicles65,17866,440180,246295,412
Other, net7,3438,28916,81913,034
Corporate(65,627)(42,011)(117,589)(96,457)
Total$6,894$32,718$79,476$211,989

TOTAL ASSETS:January 31, 2024July 31, 2023
Recreational vehicles
North American Towable$1,375,699$1,429,899
North American Motorized1,226,9091,268,109
Total North America2,602,6082,698,008
European2,988,4152,898,175
Total recreational vehicles5,591,0235,596,183
Other1,023,3711,048,076
Corporate611,435616,571
Total$7,225,829$7,260,830




8


DEPRECIATION AND INTANGIBLE ASSET AMORTIZATION EXPENSE:Three Months Ended January 31,Six Months Ended January 31,
2024202320242023
Recreational vehicles
North American Towable$13,788$15,028$27,552$30,465
North American Motorized8,8498,17217,79116,333
Total North America22,63723,20045,34346,798
European31,13628,71361,53356,015
Total recreational vehicles53,77351,913106,876102,813
Other
13,66815,33827,29430,986
Corporate
6784311,227876
Total$68,119$67,682$135,397$134,675

Three Months Ended January 31,Six Months Ended January 31,
CAPITAL ACQUISITIONS:2024202320242023
Recreational vehicles
North American Towable$4,443$16,820$11,373$37,994
North American Motorized5,38610,26612,86129,330
Total North America9,82927,08624,23467,324
European16,11612,15130,87621,071
Total recreational vehicles25,94539,23755,11088,395
Other
6,2447,95714,53512,769
Corporate
4,1721516,907271
Total$36,361$47,345$76,552$101,435

3.    Earnings Per Common Share

The following table reflects the weighted-average common shares used to compute basic and diluted earnings per common share as included on the Condensed Consolidated Statements of Income and Comprehensive Income:

Three Months Ended January 31,Six Months Ended January 31,
2024202320242023
Weighted-average common shares outstanding for basic earnings per share
53,322,504 53,518,878 53,309,169 53,587,646 
Unvested restricted and performance stock units 328,079 292,032 442,981 282,184 
Weighted-average common shares outstanding assuming dilution
53,650,583 53,810,910 53,752,150 53,869,830 

For the three months ended January 31, 2024 and 2023, the Company had 8,078 and 169,350 unvested restricted stock units and performance stock units outstanding, respectively, which were excluded from this calculation as their effect would have been antidilutive. For the six months ended January 31, 2024 and 2023, the Company had 29,688 and 186,895 unvested restricted stock units and performance stock units outstanding, respectively, which were excluded from this calculation as their effect would have been antidilutive.




9


4.    Derivatives and Hedging

The total amounts presented in the Condensed Consolidated Statements of Income and Comprehensive Income due to changes in the fair value of the derivative instruments are as follows:

Three Months Ended January 31,
20242023
Gain (Loss) on Derivatives Designated as Cash Flow Hedges
Gain (Loss) recognized in Other Comprehensive Income, net of tax
Interest rate swap agreements (1)
$ $(661)
Total gain (loss)$ $(661)

(1)Other comprehensive income (loss), net of tax, before reclassification from accumulated other comprehensive income (“AOCI”) was $0 and $(136) for the three months ended January 31, 2024 and 2023, respectively.

Six Months Ended January 31,
20242023
Gain (Loss) on Derivatives Designated as Cash Flow Hedges
Gain (Loss) recognized in Other Comprehensive Income, net of tax
Interest rate swap agreements (2)
$ $85 
Total gain (loss)$ $85 

(2)Other comprehensive income (loss), net of tax, before reclassification from AOCI was $0 and $718 for the six months ended January 31, 2024 and 2023, respectively.

Three Months Ended January 31,
20242023
 Interest Interest
SalesExpenseSalesExpense
Gain (Loss) Reclassified from AOCI, Net of Tax
Interest rate swap agreements$ $ $  $525 
Gain (Loss) on Derivatives Not Designated as Hedging Instruments
Gain (loss) recognized in income, net of tax
Foreign currency forward contracts(236) 1,118  
Commodities swap agreements  (1,567) 
Interest rate swap agreements (205) (83)
Total gain (loss)$(236)$(205)$(449)$442 




10


Six Months Ended January 31,
20242023
 Interest Interest
SalesExpenseSalesExpense
Gain (Loss) Reclassified from AOCI, Net of Tax
Foreign currency forward contracts$ $ $(58)$ 
Interest rate swap agreements   633 
Gain (Loss) on Derivatives Not Designated as Hedging Instruments
Gain (loss) recognized in income, net of tax
Foreign currency forward contracts(75) 1,946  
Commodities swap agreements  (2,229) 
Interest rate swap agreements (139) 171 
Total gain (loss)$(75)$(139)$(341)$804 

As of January 31, 2024 and July 31, 2023 there were no derivative instruments designated as cash flow hedges. The Company has certain other derivative instruments which have not been designated as hedges. These other derivative instruments had a notional amount totaling approximately $78,772 and a fair value liability of $1,509 as of January 31, 2024. These other derivative instruments had a notional amount totaling approximately $25,248 and a fair value liability of $932 as of July 31, 2023. For these derivative instruments, changes in fair value are recognized in earnings.

Net Investment Hedges

The foreign currency transaction gains and losses on the Euro-denominated portion of the term loan, which is designated and effective as a hedge of the Company’s net investment in its Euro-denominated functional currency subsidiaries, are included as a component of the foreign currency translation adjustment. A loss, net of tax, was included in the foreign currency translation adjustment of $6,237 for the three months ended January 31, 2024 and a gain of $7,172 was included for the six months ended January 31, 2024. Losses, net of tax, included in the foreign currency translation adjustments were $30,297 for the three months ended January 31, 2023 and $20,912 for the six months ended January 31, 2023.

There were no amounts reclassified out of AOCI pertaining to the net investment hedge during the three and six-month periods ended January 31, 2024 and January 31, 2023, respectively.

5.    Inventories

Major classifications of inventories are as follows:

January 31, 2024July 31, 2023
Finished goods – RV$283,273 $164,456 
Finished goods – other87,933 93,476 
Work in process330,193 313,006 
Raw materials494,791 563,614 
Chassis739,682 681,122 
Subtotal
1,935,872 1,815,674 
Excess of FIFO costs over LIFO costs(159,604)(162,604)
Total inventories, net$1,776,268 $1,653,070 

Of the $1,935,872 and $1,815,674 of inventories at January 31, 2024 and July 31, 2023, $1,344,893 and $1,224,069, respectively, were valued on the first-in, first-out (“FIFO”) method, and $590,979 and $591,605, respectively, were valued on the last-in, first-out (“LIFO”) method.




11


6.    Property, Plant and Equipment

Property, plant and equipment consists of the following:

January 31, 2024July 31, 2023
Land$155,021 $147,633 
Buildings and improvements1,045,796 1,038,394 
Machinery and equipment691,731 672,499 
Rental vehicles111,686 99,360 
Lease right-of-use assets – operating43,741 47,969 
Lease right-of-use assets – finance5,145 5,518 
Total cost2,053,120 2,011,373 
Less: Accumulated depreciation(670,893)(623,565)
Property, plant and equipment, net$1,382,227 $1,387,808 

See Note 15 to the Condensed Consolidated Financial Statements for further information regarding the lease right-of-use assets.

7.    Intangible Assets and Goodwill

The components of Amortizable intangible assets, net are as follows:

January 31, 2024July 31, 2023
Accumulated
Accumulated
CostAmortizationCost
Amortization
Dealer networks/customer relationships
$1,106,507 $567,048 $1,112,273 $526,327 
Trademarks
353,500 104,621 355,560 96,087 
Design technology and other intangibles
255,892118,715258,868107,483
Non-compete agreements
1,4001,4001,4001,225
Total amortizable intangible assets
$1,717,299 $791,784 $1,728,101 $731,122 

Estimated future amortization expense is as follows:

For the remainder of the fiscal year ending July 31, 2024$64,729
For the fiscal year ending July 31, 2025117,739
For the fiscal year ending July 31, 2026106,480
For the fiscal year ending July 31, 202797,769
For the fiscal year ending July 31, 202890,398
For the fiscal year ending July 31, 2029 and thereafter448,400
$925,515





12


Changes in the carrying amount of Goodwill by reportable segment for the six months ended January 31, 2024 are summarized as follows:

North American TowableNorth American MotorizedEuropeanOtherTotal
Net balance as of August 1, 2023$337,883 $65,064 $965,758 $431,717 $1,800,422 
Fiscal 2024 activity:
Goodwill acquired   3,635 3,635 
Foreign currency translation   (16,296) (16,296)
Net balance as of January 31, 2024
$337,883 $65,064 $949,462 $435,352 $1,787,761 

Changes in the carrying amount of Goodwill by reportable segment for the six months ended January 31, 2023 are summarized as follows:

North American TowableNorth American MotorizedEuropeanOtherTotal
Net balance as of August 1, 2022$344,975 $53,875 $893,383 $511,918 $1,804,151 
Fiscal 2023 activity:
Goodwill acquired4,097    4,097 
Measurement period adjustments   4,682 4,682 
Foreign currency translation  55,729  55,729 
Deconsolidation of Roadpass Digital   (84,883)(84,883)
Net balance as of January 31, 2023
$349,072 $53,875 $949,112 $431,717 $1,783,776 

8.    Equity Investments

As discussed in Note 8 to the Company’s Consolidated Financial Statements included in the Fiscal 2023 Form 10-K, effective December 30, 2022, the Company formed a joint venture with TechNexus Holdings LLC (“TechNexus”), whereby the Company transferred TH2Connect, LLC d/b/a Roadpass Digital and its associated legal entities to TN-RP Holdings, LLC (“TN-RP”), following which the Company and TechNexus own 100% of the Class A-RP units and Class C-RP units, respectively, issued by TN-RP.

TN-RP is a variable interest entity (“VIE”), in which both the Company and TechNexus each have a variable interest. The Company’s equity interest, which entitles the Company to a share of future distributions from TN-RP, represents a variable interest. The Company has significant influence due to its Class A-RP unit ownership interest, non-majority seats on the TN-RP advisory board and certain protective rights, and therefore the Company’s investment in TN-RP is accounted for under the equity method of accounting and reported as a component of Equity investments in the Condensed Consolidated Balance Sheets. Similarly, the Company holds an additional investment that is also a VIE over which the Company has significant influence. This is also reported as a component of Equity investments in the Condensed Consolidated Balance Sheets.

The Company had the following aggregate investment and maximum exposure to loss related to these VIEs:

January 31, 2024July 31, 2023
Carrying amount of investments$128,572 $126,909 
Maximum exposure to loss$145,622 $161,459 

The Company’s share of gains and losses accounted for under the equity method of accounting are included in Other income, net in the Condensed Consolidated Statements of Income and Comprehensive Income. The losses recognized in the three and six months ended January 31, 2024 were $3,502 and $9,437, respectively, and the amounts recognized in the three and six months ended January 31, 2023 were not material.




13


9.    Concentration of Risk

One dealer, FreedomRoads, LLC, accounted for 15% of the Company’s consolidated net sales for the three-month period ended January 31, 2024 and 14% of the Company’s consolidated net sales for the three-month period ended January 31, 2023, and accounted for 14% of the Company’s consolidated net sales for both the six-month periods ended January 31, 2024 and January 31, 2023. The majority of the sales to this dealer are reported within the North American Towable and North American Motorized segments. This dealer also accounted for 17% of the Company’s consolidated trade accounts receivable at January 31, 2024 and 13% at July 31, 2023. The loss of this dealer could have a material effect on the Company’s business.

10.    Fair Value Measurements

The financial assets and liabilities that are accounted for at fair value on a recurring basis at January 31, 2024 and July 31, 2023 are as follows:
Input LevelJanuary 31, 2024July 31, 2023
Cash equivalentsLevel 1$194,454$286,984
Deferred compensation plan mutual fund assetsLevel 1$42,042$40,220
Equity investmentsLevel 1$704$4,105
Foreign currency forward contract liabilityLevel 2$399$
Interest rate swap liabilityLevel 2$1,110$932

Cash equivalents represent investments in short-term money market instruments that are direct obligations of the U.S. Treasury and/or repurchase agreements backed by U.S. Treasury obligations. These investments are reported as a component of Cash and cash equivalents in the Condensed Consolidated Balance Sheets.

Deferred compensation plan assets accounted for at fair value are investments in securities (primarily mutual funds) traded in an active market held for the benefit of certain employees of the Company as part of a deferred compensation plan, which are reported within Other assets in the Condensed Consolidated Balance Sheets. Additional plan investments in corporate-owned life insurance are recorded at their cash surrender value, not fair value, and therefore are not included above.

Equity investments represent stock investments that are publicly traded in an active market and are reported within Other assets in the Condensed Consolidated Balance Sheets.

The fair value of foreign currency forward contracts is estimated by discounting the difference between the contractual forward price and the current available forward price for the residual maturity of the contract using observable market rates.

The fair value of interest rate swaps is determined by discounting the estimated future cash flows based on the applicable observable yield curves.

11.    Product Warranties

The Company generally provides retail customers of its products with a one-year or two-year warranty covering defects in material or workmanship, with longer warranties on certain structural components.

Changes in our product warranty liability during the indicated periods are as follows:

Three Months Ended January 31,Six Months Ended January 31,
2024202320242023
Beginning balance$333,274$325,713$345,197$317,908
Provision66,47872,356140,913161,781
Payments(81,355)(75,503)(165,526)(155,644)
Foreign currency translation1,2174,099(970)2,620
Ending balance$319,614$326,665$319,614$326,665



14


12.    Long-Term Debt

The components of long-term debt are as follows:

January 31, 2024July 31, 2023
Term loan$807,621 $758,094 
Asset-based credit facility59,604  
Senior unsecured notes500,000 500,000 
Unsecured notes 27,093 27,558 
Other debt35,468 41,753 
Total long-term debt1,429,786 1,327,405 
Debt issuance costs, net of amortization(22,083)(24,726)
Total long-term debt, net of debt issuance costs1,407,703 1,302,679 
Less: Current portion of long-term debt(17,234)(11,368)
Total long-term debt, net, less current portion$1,390,469 $1,291,311 

As discussed in Note 13 to the Company’s Consolidated Financial Statements included in the Fiscal 2023 Form 10-K, the Company is a party to a term loan (“term loan”) agreement, which consists of a U.S. dollar-denominated term loan tranche and a Euro-denominated term loan tranche, and a $1,000,000 revolving asset-based credit facility (“ABL”).

On November 15, 2023, the Company entered into amendments to both its term loan and ABL agreements to extend maturities and lower the applicable margins used to determine the interest rate on the U.S. dollar-denominated term loan tranche. Pursuant to the term loan amendments, the applicable margin used to determine the interest rate on U.S. dollar-denominated loans was reduced by 0.25% so that the applicable margin for Alternate Base Rate ("ABR")-based loans is 1.75% and 2.75% for Secured Overnight Financing Rate (“SOFR”)-based loans. The SOFR credit spread adjustment applicable to U.S. dollar-denominated SOFR-based loans was eliminated. The applicable margin for Euro-denominated EURIBOR-based loans was unchanged. The maturity date for the term loan was extended from February 1, 2026 to November 15, 2030. Covenants and other material provisions of the term loan agreement remain materially unchanged. Following the amendments, the principal amounts outstanding under the term loan agreement were $450,000 on the U.S. dollar-denominated term loan tranche and 330,000 Euro on the Euro-denominated term loan tranche. Under the provisions of the amended term loan, both the U.S. and Euro tranches require annual principal payments of 1.0% of the new term loan balance, payable quarterly in 0.25% installments starting on May 1, 2024. Pursuant to the ABL amendment, the maturity date for loans under the ABL agreement was extended from September 1, 2026 to November 15, 2028. Maximum availability under the ABL remains at $1,000,000 and there were no borrowings outstanding as of the November 15, 2023 amendment date. The applicable margin, covenants and other material provisions of the ABL remain materially unchanged.

The November 15, 2023 debt amendments noted above were evaluated on a creditor-by-creditor basis pursuant to the requirements in ASC 470-50 related to syndicated loan arrangements. Extinguishment accounting was applied to the creditors that were deemed to have a substantial difference in terms based on an analysis of the present values of cash flows before and after the amendments. As a result of this analysis, the Company recorded expense of $14,741 in the second quarter of fiscal 2024. $7,566 of this $14,741 expense is classified as interest expense in the Company’s Condensed Consolidated Statements of Income and Comprehensive Income and primarily represents extinguishment charges, while the remaining $7,175 is classified as administrative expense and primarily represents third-party costs attributed to the modified loans. In addition, during the second quarter of fiscal 2024 the Company capitalized qualifying financing-related costs of $10,480 related to these amendments which will be amortized over the remaining term of the amended agreements subject to acceleration for early term loan principal payments.

As of January 31, 2024, the outstanding U.S. term loan tranche balance of $450,000 was subject to a SOFR-based rate totaling 8.083%. As of July 31, 2023, the outstanding U.S. term loan tranche balance of $271